Return on disinvestment

For a mall that isn’t quite dead yet, this is an astonishing statistic:

A Pennsylvania mall that was foreclosed on after its owners failed to repay $143 million has been auctioned off for $100.

Wells Fargo Bank was owed the money from a 2006 loan and submitted the winning bid for the 1.1 million-square-foot Galleria at Pittsburgh Mills on Wednesday. The bank was acting as trustee for MSCI 2007 HQ11, the trust that bought the mall in suburban Frazer Township.

Wells Fargo foreclosed last year on the mall, which opened in 2005. The mall once was worth $190 million but recently was appraised at just $11 million and is slightly more than half occupied. Pittsburgh Mills Limited Partnership defaulted on the loan.

In its day, the mall was notable enough to have a Wikipedia entry.

(Via Fark.)





4 comments

  1. Mike »

    21 January 2017 · 12:31 am

    I’d bet it was an Amazon that killed it!

  2. CGHill »

    21 January 2017 · 12:52 am

    Wouldn’t be the first time, I’d bet.

  3. Samrobb »

    23 January 2017 · 12:20 pm

    I live about 15 minutes form the Mills, and go there frequently, so this is local news to me. The transaction was reported as a “consensual foreclosure”. The owners of the Mills owed Wells Fargo something like $143 million, so the bank bough the mall for $100 + forgiveness of that debt. Anyone else wanting to buy the place would have been on the hook for that $143 million.

  4. CGHill »

    23 January 2017 · 1:31 pm

    Which makes sense, transaction-wise.

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